London, 16 March: Local councils and house buyers have been warned that they are the first to feel the £1.6 billion cost of the Chancellor’s new carbon tax which was buried in the small print of his Budget.

As a taste of things to come, government is increasing fuel tax on diesel to the parts of the construction industry, amongst others, by 400%, from the currently discounted level of 11.14 pence per litre to the standard 57.95 pence per litre, resulting in an increase in annual fuel costs to the UK of about £1.6 billion per year.

Much of this burden will fall on the construction industry, and particularly on Local Authorities through the costs of road maintenance contractors, and also the cost of running gritters and snow clearers, formerly exempted but now required to pay full fuel duty.

Housebuyers will also be affected. The construction industry is reported as estimating that the new carbon tax will increase the cost of house building by £5000 per house.

Further impacts on the costs of national infrastructure projects, such as HS2, are inevitable.

Dr Benny Peiser, director of the GWPF said:

Increasing tax on diesel fuel used by the construction sector, and others, has far-reaching consequences for Local Authorities, the cost of national infrastructure projects such as HS2 and for house buyers. But that’s carbon taxation for you.”

Carbon taxes reveal the true and rising cost of climate policies, making everything more expensive and will become politically toxic.”